Independent P&C Agency Valuation?

Greg Salamanca

New Member
1
I'm curious as to what the folks in here think a proper sales price would be for the agency I work for. I know that sales prices vary wildly depending on numerous factors so I thought I'd spell out some details and get opinions if you'll all be so kind:

Total yearly book premium: 2,300,000.00
100% personal lines
58% of business homeowners/dwelling fires/renters (agency mainly wrote for 2 large mortgage companies and autos only came from cross selling these)
40% of business auto
2% of business "other" umbrella, boat etc
85-88% avg yearly retention
Top 5 carriers: Safeco, Travelers, Encompass, CSE (regional), Progressive
Yearly gross estimate 280-300k

Now I believe because the agency has good retention, very little non standard auto stuff and a large number of homeowners polices that the book/agency sales price would be a bit higher than the average commercial shopping center 90% non standard auto agency.

Finally, in case one wonders why I ask is I have heard the principal musing about leaving the business and I was fancying making an offer to buy. I don't want to shoot myself in the foot by throwing out a number too high and I know the principal will not engage unless I come up with a number first.
 
I don't want to shoot myself in the foot by throwing out a number too high and I know the principal will not engage unless I come up with a number first.

Then wait.

Jack's first rule of negotiation: Never make an offer until the seller names his price. Period.

When he's ready to leave the business and wants to sell the agency bad enough he'll put a price on it or nobody in their right mind will deal with him.

Also keep in mind that retention can drop like a stone if the principle doesn't stay there for a few years for the transition which, in turn, means the purchase price gets substantially lower.
 
I am a new insurance agent I would like to get appointments as independent insurance agent, I have state of MD,DC, VA producer license P&C where shall I look?

any help?
 
I am glad to talk to you. I can be reached thru my website.

Question: How did you come to post your message on a thread with a totally different type of request?



I am a new insurance agent I would like to get appointments as independent insurance agent, I have state of MD,DC, VA producer license P&C where shall I look?

any help?
 

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